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A new document sighted by reporters shows that some 3,692 workers could be hit following the collapse of uniBank.
The number represents 1,944 of the bank’s staff and 2,018 who make up the employees of other related firms.
The document, however, notes that the company was overstaffed compared to others in the banking sector, causing a drain on its financials.
According to the document, uniBank prior to the revocation of its license had 811 permanent staff, 64 contract staff, 990 outsourced staff and 79 National Service Staff for a bank with just 54 branches.
That was not all; the bank also had related entities whose staff depended on it for financial support.
In the breakdown, the permanent staff of the related entities was 1,284, contract staff of 244, outsourced staff 200 and 20 National Service personnel.
In total, the employees that depended on the financials of the bank were 3,692, even though the bank’s output was less, compared to the total staff strength.
It is anticipated that most of these employees have been affected by the revocation of the license of the bank, as they no longer work for the bank.
The document stated that “while elements of peer benchmarking analysis have its limitations, it appears that the bank has a number of underperforming branches, is overstaffed, and has materially higher cost base than its peers”.
In addition, the bank had the worst cost income ratio compared with five banks in the document.
This means that when you compare the bank’s cost to its income—which includes administrative and fixed cost like salaries, the bank was spending more than its income.
Also, uniBank had the worst Non-staff cost percentage of its operating expenses.
By this, the bank’s day-to-day operational spending was badly managed, causing the institution to lose a lot of money.